Answer Posted / Vivek Khodlan
The Compensation Theorem is a concept in accounting that states that changes in the market value of a company can be attributed to either a change in its cash flows or a change in the discount rate used to calculate the present value of those cash flows. It demonstrates that the intrinsic value of a company's stock price can be explained by both its future expected cash flows and the risk level associated with those cash flows.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
what is your achievements?
From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
You are given the following information in respect of a company: Fixed cost –Rs.13,000 Variable cost –Rs.14,000 Net profit –Rs.3,000 Net sales-Rs.30,000 Find out: a>BEP b>The profit for sales volume of Rs.50,000 c>The volume of sales to make a profit of Rs.10,000
what is tds rate of WCT applay for sale tax ragistard company.
Hi Im Arun D. I m short listed for Karnatka bank interview. Can anybody share ur experiences regarding Bank interview of karnatka bank which was held on dec for Clerical post. Please help me I f u can. thanx in advance
Give the balance sheet schedules ,what is differe tax, GIVE THE RATES OF DIFFERED TAX FOR THE YEAR 2008-09
pl send me SBI previous question papers for clerical post to my email id :jahnavi_devi@yahoo.com
hai everybody... wish u all the best for those who got selected in sbi associate bank is anyone from coimbatore region attending on 27th may 2009.
respected sir,i am doing II b.com(CA) in a reputed college..i want to know about the ideas and ways to shine in future.i am doing ICWAI also sir.i want to know what shall i study more in this field to shine...
WHEN IN ADJUST. GIVEN THAT THERE IS VALUE OF RS...., OBSOLESCENCE STOCK INCLUDED IN CLOSING STOCK RS.......,WHAT IS THE PROPER WAY TO SHOW IN INCOME STATEMENT AND POSITION STATEMENT.
Anyone whose sbi interview has been over , please share all the question asked by them
im preparing for the sbi clerical post please send me the solved questions.
SOUTH ATLANTIC OIL AND GAS INC.is a fraud company
what are the new rules of central excise ?
Can anyone mail journal entries for me? my Mail id rukmini@live.in
